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Gold & Silver are great products to have in ones portfolios. Sometimes its safer to overweight in them and sometimes it safer to underweight. Since the highs in Gold and Silver last year, both have created falling channels, reflected by a series of lower highs.
The Power of the Pattern reflected on 8/31/2011 (in the chart below), that Gold was making an important “kiss of resistance” at the top of its multi-year rising channel.(see post here) What has happened since this chart below? A series of lower highs and its paid to underweight them!
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The top chart reflects that Gold & Silver remain inside of multi-month falling channels. Until support comes back into play ( which it will again), these products might not be the safest tools to overweight towards.
